Locational Patterns of Low-Income Housing Tax Credit Developments

Abstract

This study examined neighborhood characteristics and spatial patterns of Low-Income Housing Tax-Credit (LIHTC) developments in four metropolitan areas using census data and the U.S. Department of Housing and Urban Development's (HUD) LIHTC database. Sociospatial analysis determined neighborhood characteristics associated with LIHTC developments and how clustered or dispersed they are. Findings indicate that as a low-income housing policy, the LIHTC program was more successful than other programs at locating developments in less disadvantaged neighborhoods but not as successful at avoiding geographic concentrations associated with these other low-income housing programs. The presence of a LIHTC project increased the likelihood of nearby LIHTC development by rewarding developers who place LIHTC units in qualified census tracts.